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April 11, 2012 at 6:44 AM in reply to: Where is the inventory, where is the inventory, where is the inventory… #741441
ocrenter
Participant[quote=SD Realtor]
Back on ignore so post all you want.[/quote]
SDR,
Hey, I think our ignore list might look the same! 🙂
ParticipantWell, Zimmerman is taking to the blogosphere:
I felt so inspired to donate afterward, especially seeing all that red, white, and blue! He seem like a real patriot! NOT!
April 10, 2012 at 2:02 PM in reply to: OT – Who will run for President on the Republican side? #741387Participant[quote=markmax33]Where do his delegates go Flu? How does it affect all caucus states? Think about it before you type…[/quote]
Yes, looks like the path is now wide open for Paul to win it all. If only Romney would drop out…
Participant[quote=sdriva]We looked at 16209 Lone Bluff this past weekend.
According to the disclosure, back in December of 2009, the existing slab foundation was made level by inserting jacks under the slab and the foundation and was reinforced by adding a reinforced concrete curtain wall foundation around the exterior of the home slab.
In June of 2011, a visual review by certified geologists was done to observe for the presence of distress. Based on that visual review, “the structure and improvements appear to be performing well from a geotechnical standpoint.”
Regardless, we would be asked to sign a waiver, assuming all responsibility for future repairs that may come up. They also recommended that we get a geological engineer examine the reports and the property.
I also called up some insurance companies and found out that no insurance will cover damages caused by soil slippage.
I’m staying away from this one…[/quote]
almost like buying a salvaged vehicle…
Participant[quote=sdduuuude]
With me, it’s a logic problem. Either you realize all the gain of buying down the MR or you don’t.
If you have to pay $40K to buy down your MR and you feel you got a $40K discount vs. a comparable property because of it, then you are good. And if that is really the case, then you would honestly get the $40K back when you sell.
But, sdr and others said that you aren’t going to get that $40K back when you sell, so I’m not so sure I believe that you got as much of a discount due to the MR that you think. Your $250K discount was due to the other factors you mention.
Pragmatically, we’ll never know, of course. Who can measure it ? Nobody. The only way to know is if buyers start putting it in the offer letter so you can compare properties against each other.
The neat thing about this thread is – it points out the importance of knowing how buyers and sellers value MR vs. the actual, real cost of it.[/quote]
well, the logic issue is a two step logic.
you are correct, if all things being equal, of course MR is a bad deal. that seems like a no brainer.
but the problem is the nature of the bubble and the nature of the bust. leading to all things are NOT equal.
it is highly unlikely to find a similarly upgraded and updated non-MR home for JUST $40k more than the MR home. The non-MR home, given it is in established neighborhoods that took less beating from the bust, carries a higher than logical premium than MR homes.
So with the above scenario, insisting on ALL MR homes are BAD deals makes very little sense.
Participant[quote=sdduuuude]But you just said that paying of the MR doesn’t increase the value of a particular home by as much as the amount you pay off. How is knowing that you can pay it off (and effectively lose money), any comfort at all ? ?
he point is – you put yourself in a no-win situation. Here I am, today, with no house.
OK. So I can choose to buy a house with MR or not.
If I choose an MR house, then I am choosing to buy either the right to make payments on a 9% loan or the right to make a lump-sum payment which will improve the value of my house by less than that lump-sum payment.
If you choose to put yourself in a position where your next move is a choice between two bad options, then it’s a bad choice.
Those MR should trade like the cash liabilities that they are and the only way is for buyers to start putting MR payoff requests in their offers.[/quote]
But it isn’t a no win situation. Had I completely ruled out all homes with MR, I would not be able to purchase my home at $260k discount from original asking.
Now I simply need to pay about 1/5 that discount to get rid of the MR.
The point here is there’s a lot of people like yourself that shy away from communities with MR. Which helps create more bargains in MR communities. And it just so happens these are communities that was hit hard, hence, more great opportunities. This often means excellent bargains even factoring in the yearly MR. With the ability to pay off the MR early at 1/3 the long term cost, it makes buying bargains in MR communities even more attractive.
If you insist that’s no win, sure, be my guest.
Participant[quote=sdduuuude][quote=sdrealtor]I think you need to re-read what he wrote and check your math. He wrote maybe $10,000 to $20,000 more for paid off MR on a house with $5400 annual MR (payoff = $58,000). And I think thats a fairly big maybe. His opinion is very much in line with mine that paying them off wont get you close to a dollar for dollar return. A 2 to 4X the annual MR payment seems like a reasonable boost in value for paid off MR but I wouldnt expect more. Paying them off could be a wise choice if you stay long term but most likely wouldnt if you wanted to boost resale value only.[/quote]
Doesn’t this scream “whatever you do, don’t buy a house with MR ” ??
I mean, if by paying them off early you get out from under a 9% loan, but it doesn’t increase the value of the house by the same amount, then buying into a place with MR is just dumb.
Just a trick the developers pull because people aren’t making rational decisions.
Maybe the good realtors will start a trend of putting in buy offers that include a requirement that, as a part of escrow, the MR tax is paid off. Then, you can get clear comparisons between houses with different MR. i.e. offer 800K for a house with $40K in MR, or $840K for a house without it. Either way, you offer $840K with any and all MR paid off.[/quote]
Heres the thing, the difference between a house with no MR and a comparable with MR would not be $840k vs $800k. Similar sized and upgraded and updated homes in established neighborhoods without MR are often times $100-150k above newer homes in MR communities. This differential of course is because of not just lack of MR, but also because of higher % of distress. In these situations, the MR payoff would be fraction of that price difference. Knowing that one can pay off the MR should open people up to buy in MR communities, not stay away from it. Insistence on steering clear from MR with complete disregard to the premium you would have to pay otherwise simply close you off from potential opportunities.
Participantseem like the inventory reduction and the increased pending are proportional. meanwhile the contingents are just stuck there without much movement.
so sdr, SDR, any theories about the lack of inventory?
Participant[quote=sdrealtor]I think you need to re-read what he wrote and check your math. He wrote maybe $10,000 to $20,000 more for paid off MR on a house with $5400 annual MR (payoff = $58,000). And I think thats a fairly big maybe. His opinion is very much in line with mine that paying them off wont get you close to a dollar for dollar return. A 2 to 4X the annual MR payment seems like a reasonable boost in value for paid off MR but I wouldnt expect more. Paying them off could be a wise choice if you stay long term but most likely wouldnt if you wanted to boost resale value only.[/quote]
I would not recommend anyone to payoff the MR to boost value on resale. Nor did I say that. Yes, misread the value Jim quoted. My bad on that. That moves the break even from 5 years to 6.5 years.
ParticipantJim has a new post on the topic:
Jim is putting the value of the property at $20-30k higher compared to comparable homes without MR. If thats indeed the case, then one’s break-even point would just be 5 years. That makes it a much easier decision!
Participant[quote=svelte]Rodney King.[/quote]
Was on a sugar high?
ParticipantSmall community of tightly squeezed in detached condos at the corner of a major intersection. Have you taken account of the noise factor?
Some of them do get a very nice view, looks like your house of interest falls into that category. Neighbor actually paid little over 700k at the peak, true insanity.
Participant[quote=davelj][quote=ocrenter]It is the South.
This is expected.[/quote]
Just a point on what defines “the South” (being from the South myself).
Florida is IN the South – geographically – but it is not OF the South. Culturally, Florida is completely different from the aggregate of Louisiana, Alabama, Mississippi, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Kentucky, Tennessee, and Arkansas, which are culturally somewhat similar (at least compared to Florida).
Culturally, Florida has more in common with California or New York than with Georgia, et al. Just clearing that point up.[/quote]
I do agree it is not the prototypical southern state. But there’s still shades of its racial attitude. Call it the California of the South, if you will. Kinda like how Santee’s mayor describe his city as the La Jolla of east county.
Participant[quote=CardiffBaseball]Random points (errr incoherent ramblings)
– Friday a young black man, who no doubt could be Obama’s son, was put away for life. His crime was executing a couple of British Tourists who happened to get lost and drove down the wrong street. The parents of these young men blasted Obama for saying nothing despite three different letters having been sent.
http://www.ibtimes.com/articles/321429/20120329/murdered-british-tourists-attack-obama-parents.htm
– We have another young black man who was killed in Orlando, and trust me none of these grandstanders give a shit. Not a peep. How was he killed? Hazing incident back in November at the Citrus Bowl. 4-5 months now, nobody has been arrested, and you don’t see race hustlers asking why.
The Sanford chapter of the NAACP basically said Sharpton was an idiot today after his calls for increased levels of civil disobedience. The locals are saying get the F out of here, this will get resolved.
Sharpton and Jesse Jackson have always been loudmouthed and opportunistic @holes that do more to hurt the African American cause.
Regarding the death of the gay black student. That’s just it. These civil rights “fighters” are the worse hypocrites. In fact polls after polls consistantly show blacks and Hispanics are the worse when it comes to prejudice against the gay population. Proving time and time again victims of prejudice often become the perpetrators just so they can feel they are at least “better” than someone else.
Lastly, not sure why Obama needs to comment on the death of couple of tourists.
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